The city of Modesto's proposed two-year budget highlights several opportunities for vendors in the coming years.
The city is home to more than 220,000 residents and has seen what officials cite as “healthy manageable” growth in recent years. Its operating budget is $639.2 million for the 2025-26 fiscal year.
The Information Technology Department (ITD) has a proposed operating budget of $15.8 million for FY 2025-26, up almost $1.8 million from FY 2024-25, and a projected budget for FY 2026-27 of nearly $17 million. Staffing for the city’s IT Department is expected to hold steady at 39 positions in the next two years.
For its part, ITD has four key goals for the coming years, including cybersecurity enhancements; infrastructure improvements focused on smart city technologies and future proofing; digital transition and integration; and customer satisfaction.
The budget document outlines several potentially large IT implementations planned for the coming years.
In the coming fiscal year, ITD will be working to eliminate duplicate data systems with a citywide inventory; launch an integrated citizen service portal; implement a citywide data quality assurance framework; and implement smart infrastructure projects such as traffic synchronization and public safety enhancements.
The Finance Department noted in the budget document that it will be in search of a new contract management solution for its procurement process as well as new utility billing and cashiering software at some point in the 2025-26 fiscal year.
The Police Department outlined its plans to integrate a new computer-aided dispatch system with the recently deployed Real Time Crime Center. In addition, the department plans to acquire and launch a red-light camera program in the next year.
These represent only a few of the upcoming opportunities with the city. A list of open procurements can be found here.
Deep Dive Resources
Fiscal Year 2025-26 and 2026-27 Proposed Operating Budget
Fiscal Year 2025-26 and 2026-27 IT Budget Presentation
Fiscal Year 2025-2026 Capital Improvement Program
City of Modesto Procurement Portal
Modesto Budget Plan Outlines Upcoming Tech Opportunities
What to Know- Modesto’s $639.2 million FY 2025–26 budget includes major IT investments; $15.8 million is allocated to the IT Department.
- Planned tech projects include a citizen service portal, a new procurement and billing system, smart city infrastructure, and cybersecurity upgrades.
