The Special City Council Meeting held on May 14, 2025, in Big Bear Lake, California, focused on the city’s budget for the upcoming fiscal year, emphasizing stable revenue sources and ongoing investments in community services and infrastructure.

The meeting began with a review of the city’s financial health, highlighting a stable funding environment driven by property tax, transient occupancy tax (TOT), and sales tax. The city is budgeted for 72 full-time positions, with no new positions being added in the forthcoming budget. Officials underscored the importance of maintaining reserves while planning expenditures, particularly in public safety and community quality of life.

A detailed breakdown of the budgeted resources revealed a total of approximately $48 million, with the general fund accounting for about 50% of this amount. Major revenue sources, including property tax, TOT, and sales tax, were projected to continue growing, with property tax expected to rise from $5.7 million in fiscal year 2024 to over $6 million in 2025. The city is adopting a conservative approach to property tax projections, anticipating a plateau in growth.

The TOT, which recently increased from 8% to 10%, is now collected monthly, showing stable growth. City officials noted that despite fluctuations in gas prices affecting sales tax revenues, the overall business environment remains positive, with new businesses expected to contribute to future growth.

Sales tax projections for fiscal year 2025 are estimated at $3.6 million, reflecting resilience in the local economy, particularly in the restaurant and hotel sectors. The city is also focusing on encouraging voluntary compliance with TOT payments, aiming to educate businesses about their obligations before resorting to enforcement measures.

The meeting concluded with a recap of the major revenue sources, indicating a projected overall growth of 3.5% in major revenues for the next year. The general fund expenditures are set at $27 million, which includes commitments to reserves and investments in technology, infrastructure, and public safety.

Overall, the meeting highlighted the city’s commitment to fiscal sustainability and community development, setting a positive tone for the upcoming fiscal year.