Sierra Madre faces financial crisis as public safety tax proposed

During a recent city council meeting, Sierra Madre City Manager Jose Reynoso highlighted the historical significance and evolution of the Sierra Madre Fire Department, which has served the community for over a century. The department was established in response to a devastating fire in 1921, which underscored the need for local emergency services. Initially composed of volunteers, the department transitioned to a full-time career model in 2019, allowing for improved response times and enhanced medical services.

Despite these advancements, Reynoso noted ongoing challenges, including difficulties in recruiting and retaining staff, which have led to increased operational costs. The city has responded by raising salaries for both fire and police personnel to remain competitive, but this has contributed to a growing structural deficit in the city’s budget.

Acting Finance Director Satnam Wright presented the city’s budget for the fiscal year 2024-2025, indicating a balanced budget of $17.2 million in revenues and expenses. However, he warned that personnel costs, which account for 65% of the general fund, could strain future financial stability. The city relies heavily on property and utility user taxes, which comprise 70% of its income.

Wright emphasized the need for a diversified revenue stream to address potential budget shortfalls and maintain essential services. He outlined a five-year projection indicating that without adjustments, the city may struggle to meet its operational needs.

City Attorney Alex Giorgosian concluded the meeting by discussing the upcoming public safety special tax measure, which aims to address the financial challenges facing the city’s emergency services. The measure will be presented to voters, and Giorgosian provided an overview of its implications for the community.

The discussions underscored the city’s commitment to maintaining high standards of public safety while navigating the complexities of budget management and resource allocation.