Despite net $7 million in budget savings City still projected to face double digit deficits for following three years; only 70% of Measure W sales tax funds to be spent on police

Will reconsider financing for affordable apartments project

By Allen D. Payton

During their meeting on Tuesday, June 23, 2026, the Antioch City Council will vote on the Fiscal Year 2026-27 Budget, reconsider approving financing for the affordable Hillcrest Summit Apartments project and consider approving funding for Homekey+ Project at former Comfort Inn on Mahogany Way. 

Before the regular meeting begins at 7:00 p.m., the Council will hold a Closed Session beginning at 6:00 p.m. to negotiate contracts with City employee groups who have been working without one since last fall. They include the Management Unit, Operating Engineers Local Union No. 3, Confidential Unit, Antioch Police Officers Association and Antioch Police Sworn Management Association.

Annual General Fund Budget

According to the City staff report for agenda item 5. “the proposed fiscal year 2026-27 General Fund budget with a deficit of $4,567,879, to be offset by the Budget Stabilization Fund, is presented this evening. Since the budget presentation on June 9th, an additional $209,653 in vacancy and salary adjustments has been built into the draft budget.” To get to that figure the Council and staff worked to make $7,315,199 in “true” adjustments to the budget, according to Finance Director Dawn Merchant and Acting City Manager Ana Cortez.

The fiscal year 2027 budget includes a reduction of three funded staff positions “reflecting the net impact of added and frozen positions.” Sworn police officer staffing remains at 105 positions, while fiscal year 2027-28 projections include reaching a target of 117 sworn by June 30, 2028. However, as of June 10th, according to Chief Joe Vigil, there are currently 85 sworn officers on the Antioch Police force.

No COLAS (Cost of Living Adjustments), other than those previously approved for the Treatment Plan Employee Association bargaining unit, are included in the draft budget.

The proposed budget assumes the current Acting City Manager will remain in place through June 2027, and the Human Resources Manager will be filled by an Analyst, and no Assistant City Manager for six more months.

Budget Savings Highlights

The proposed budget includes the following savings:

City Manager’s Office

• Leave Assistant City Manager position vacant for six months saving $230,000. The position hasn’t been filled since last year.
• Freeze Administrative Analyst in City Manager’s office for $215,284;

Police Department

• Remove 12 Police Trainees for $631,464;
• Cancel Emergency Operations Center Improvements for $480,143;
• Update FY27 Police salaries for staffing/academy changes for $294,773;
• Reduce Police part-time help for $174,666;
• Add 4 months vacancy savings for 1 Police CSO for $55,534;
• Add 4 months vacancy savings for 1 Police Dispatcher for $70,001;

Animal Services

• Freeze 1 Animal Control Officer for $136,584;
• Add 2 months vacancy savings for 1 Animal Control Officer Police for $24,930;
• Reduction to Animal Services vet contracts and supplies of $110,000;

Public Works

• Freeze Assistant City Engineer for $262,295;
• Add 6 mos. vacancy saving Assistant/Junior Engineer for $84,221;
• Freeze Senior Civil Engineer (.25 FTE General Fund) for $47,130;
• Add 4 mos. vacancy savings Operations Supervisor for $22,630;

Community & Economic Development

• Reduction in Economic Development programs/contracts of $255,000;
• Add 6 months vacancy savings Economic Development Program Manager for $104,041;
• Add 4 months vacancy savings Senior Economic Development Program Manager for $86,415
• Freeze 1 Code Enforcement Officer for $181,981;

Recreation Department

• Underfill Recreation Supervisor with Recreation Coordinator for $45,383;
• Freeze Recreation Coordinator for 6 months for $74,402;
• Reduce Recreation part-time help for $88,636;

Finance Department

• Freeze Finance Dep’t. Business License Representative for $153,941;
• Freeze Business License Representative Finance for $153,941;
• Freeze Accounting Specialist II Finance for $166,643;

Other

• Freeze vacant Community Engagement Coordinator in Community Services Dep’t for $197,300;
• Underfill HR Manager with Analyst, freeze Specialist HR for $212,502;
• Add 6 months savings for Public Records Coordinator in City Clerk’s Office for $93,656; and
• Remove General Fund Vehicle Replacement Set-Aside for $1,776,290.

The use of Measure W 1% sales tax funds are proposed at 70% for Police, 15% for Quality of Life and 15% for Youth Services, which is out of compliance with the 80-10-10 split intended by the city council at the time the voters approved the ballot measure in November 2018.

Reserve & Budget Stabilization Funds

The minimum 20% unassigned reserve requirement is met in each fiscal year, although balancing is achieved with use of fund balance and Budget Stabilization Funds. The Budget Stabilization Fund balance is projected to be $36,249,323 at June 30, 2026; $31,681,444 at June 30, 2027; and $26,681,444 at June 30, 2028, based on current projections.

Even with this year’s budget savings, the City is projected to face double-digit deficits for the following three fiscal years. But there will be enough remaining in the Budget Stabilization Fund to cover almost all of them.

See Proposed General Fund Budget agenda Item 5 details.

California Supportive Mahogany Housing Project for Homeless

Under Item 9, the Council will consider approving a one-time capital match contribution of $750,000 for state funding of the Homekey+ California Supportive Housing (CSH) Mahogany Housing Project. It will fund the acquisition and rehabilitation of the Antioch Inn & Suites, formerly known as the Comfort Inn, to convert the existing hotel into approximately 84 to 85 units of permanent supportive housing with supportive services for eligible residents.

According to the City staff report, following Council direction at their meeting on May 22, 2025, the City applied for the Homekey+ funding. “The project application assumes ongoing operating assistance averaging approximately $1.2 million annually during the initial five-year period,” for a total of an additional $6 million. “If such funding levels were maintained over the full fifteen-year period, the total potential City contribution could be approximately $18.75 million, from the General Fund.”

“The City would receive the benefit of approximately $34.9 million in State Homekey+ funding,” awarded in May, 2026, “for acquisition and rehabilitation of the project. The City would assume ongoing administrative, monitoring, and compliance responsibilities associated with participation in the program.”

“While the City was a co-applicant and recipient of the award, the City has not executed the Homekey+ Standard Agreement with HCD and has not formally accepted the grant funds. Because the…Agreement has not been executed, the City currently has no contractual obligation to participate in the project. The City would not assume the reporting, compliance, monitoring, or administrative responsibilities associated with the Homekey+ Program.” However if the Council declines the grant funds, “the City could experience reduced competitiveness for certain future discretionary housing funding opportunities.”

See agenda Item 9 details.

Will Reconsider Financing for Affordable Apartment Complex

As previously reported, after an impassioned effort by Mayor Pro Tem and District 3 Councilman Don Freitas, during the Council’s meeting on April 14, 2026, public financing for the Hillcrest Summit Apartments received a 2-2-1 vote with Mayor Ron Bernal and District 2 Councilman Louie Rocha voting yes, Freitas and District 4 Councilwoman Monica Wilson voting no, and District 1 Councilwoman Tamisha Torres-Walker voting to abstain. That’s in spite of the fact the latter two voted for the Commercial Infill Housing Overlay District rezoning the parcel and Bernal complained about how the four-story apartment buildings would look.

Freitas mainly opposed the project because of the proximity to the gas station and 24-hour car wash. (See related article)

According to the City staff report for the item, number 4. on the agenda, “Following that failed approval, the Developer and City engaged in discussions regarding the City’s further consideration and the City Council provided direction to staff to bring the item back this evening for consideration.”

However, no changes have been made to the design of the project.

The Council will again conduct a public hearing on financing for the proposed extremely low, very low and low-income housing project, part of the 10 properties the City Council rezoned to a CIH Overlay Districts in 2022. While, as a result, no Planning Commission or Council decisions with public input are required to approve the projects, the public does have the opportunity to provide input on the City assisting with financing. 

Under the Tax Equity Fiscal Responsibility Act of 1982 (TEFRA), the Council is being asked to approve the issuance of one or more series of revenue bonds by the California Municipal Finance Authority (CMFA) to provide for the financing or refinancing of the acquisition, construction, improvement and equipping of the projects.

The bonds, not to exceed $50,000,000, will benefit Hillcrest Antioch LP for the 165-unit multi-family housing project on the 4.9-acre parcel. It is planned for vacant land located behind the 76 Service Station and 7-Eleven bordered by Shaddick Drive, Harris Drive, E. Tregallas Road and Hillcrest Avenue.

The project is planned to be 100% affordable. The affordability of the units will be based on income of the tenants with 17 units at 30% of Area Median Income (AMI), 17 units at 50% AMI and 131 units, including two manager units, will be offered at 60% AMI.

However, the staff report explains that the bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, or moral obligation, liability or responsibility for the Project or the repayment of the bonds for the financing of the Project. All financing documents with respect to the issuance of the bonds will contain clear disclaimers that the bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.

The Council is again being asked to adopt a resolution approving the issuance of the Bonds by the CMFA without such, the project cannot move forward.

See agenda Item 4 details.

Meeting Details

The beginning of the Closed Session and the regular Council meeting will be held in the Council Chambers at 200 H Street, or can be viewed via livestream on the City’s website or on Comcast cable TV channel 24 or AT&T U-verse channel 99.

See complete agenda packet.

the attachments to this post:

Hillcrest Summit Apts site map

General Fund Projections

Measure W 1% Allocation chart

City of Antioch 26-27 Genl Fund Draft Budget

Antioch GF FY27 Expenditures by Dept chart Council Mtg

This entry was posted on Monday, June 22nd, 2026 at 8:12 pm and is filed under City Council, Finance, Homeless, Housing, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.