ELK GROVE CA, (MPG) - The City of Elk Grove officially has a new budget.

At the June 11 meeting, the City Council unanimously adopted the proposed $491 million 2026-2027 fiscal year revenue and expense plan: a plan that is $80 million more than the previous 2025-2026 fiscal year budget.

The budget lists over $351 million in expected current-year revenues vs. $491 million in proposed spending, with the difference coming from spending on capital projects either underway and carried into the new budget or new projects slated to start this coming budget cycle. Project funding makes up the difference between what the city expects to spend in this coming cycle vs. the expected revenue, with almost $240 million in capital outlays, accounting for 49% of the total expense budget.

The city is proposing to spend about $450.77 million on capital projects over the next five years in its 2026-2030 Capital Improvements Program with $304.25 million in funding already secured, leaving $146.52 million unsecured. The city lists 97 projects in its five-year plan, 74 of which are capital improvement projects, 23 minor projects under $250,000 or studies, 17 new projects added this year, seven completed projects in 2026 and on track to complete another 12 in 2026-2027.

Elk Grove relies on nine main revenue sources for its budget. Largest of these is grant funding at over $66.5 million, followed by $49.59 million in community facilities districts/assessment districts revenue, $44.12 million from building impact and development fees, $43.87 million in property taxes and $40.37 million in sales tax.

Most of the two latter revenue sources go into the city’s General Fund, where $117.4 million of revenue – not including $36 million in Measure E revenue – is matched against almost $107.57 million in expenses, largest of which is over $72 million in compensation, most of which goes to public safety staff. The General Fund is increasing by $10.1 million over 2025-2026 levels due to a $4.1 million increase from the negotiated 3.5% general salary increase, Police Officers Association market adjustments, step increases, overtime needs and four new positions.

The city is also increasing staff and equipment in response to public safety needs, including purchasing several new police vehicles and red-light traffic cameras at five more intersections in response to public safety’s focus on improving traffic enforcement and safety measures.

Councilmembers praised the budget and voiced appreciation for staff’s efforts in producing what was felt to be a strong, balanced budget that addressed residents’ priorities.

Councilmember Kevin Spease said he believed the city was “moving in a great direction” while Mayor Bobbie Singh-Allen noted Elk Grove was not only in good shape, but able to do things other jurisdictions were struggling with maintaining as many are facing budget cuts.

“We are so lucky because we’re sitting here talking about quality of life,” Singh-Allen said. “This is not something other cities and counties can do.”

Besides the budget, the council also unanimously adopted the five-year Capital Improvement Program and a resolution ratifying amendments to the Elk Grove Police Managers Association and Elk Grove Police Officers Associations’ memorandums of understanding regarding amending the unrepresented compensation policy and adopting a citywide salary schedule.

Also at the June 11 meeting, the council voted unanimously to approve a staff recommendation to increase residential solid waste service rates for 2026-2027. The city’s contract with solid waste hauler Republic Services allows the company to increase rates annually by the increase in the Consumer Price Index but caps that at 3%.

According to a presentation by Elk Grove Recycling & Waste Manager Kimberly Taylor, the CPI increased by 5.37%, meaning residents will see rate increases in all three cart sizes.

“The 3% increase is being proposed by staff since CPI increased more than 3%,” Taylor said.

Taylor said most Elk Grove residents utilize the 64-gallon cart service, which will increase $1.10 from the current $36.54 per month rate. That new rate also includes a 3% bump in the city’s administrative fee, going from $3.75 to $3.86.

Residences using a 32-gallon cart will see a total increase of 95 cents, up from $31.51 to $32.46, while 96-gallon cart service jumps $1.40 from $46.66 to $48.06.

Taylor said residents using the 64-gallon carts can lower their rates by switching to the 32-gallon size. She added residents eligible for the city’s Lifeline Assistance Program would receive a 20% subsidy to reduce their service rate should they choose to enroll.

Councilmember Spease asked Taylor how residents would be notified of the rate increase. Taylor said the city doesn’t notify residents after council approval but rather prior to submitting the proposal to council by methods including in monthly billing statements.

Earlier in the meeting, Republic Services Municipal Supervisor Ray Robinson gave council an annual report on the company’s collection efforts last year. In 2025, Republic Services collected almost 84,000 tons of trash from Elk Grove and while most went to a landfill, about 46% was diverted through recycling and enhanced collection.

Diverted from the landfill through these efforts were 28,100 tons of organic waste, 8,190 tons of recycling and 5,622 tons of bulky materials. Also diverted were 4,051 bags of batteries, 11,015 gallons of used motor oil and 2,405 oil filters.

Last year the city and Republic launched Compost Corner, enabling residents to pick up free compost for gardens, flower beds and other uses. Robinson said residents picked up over 1,000 cubic yards of compost in 2025.

“That’s about 23 semitruck loads worth,” he added.

Through April 2026, residents have picked up 1,365 cubic yards. Located at Elk Grove Regional Park, Compost Corner is open until June 26 and later this year from Oct. 5 to Dec. 11.