The Arcadia City Council adopted the fiscal year 2025–26 budget on June 18, approving a $110.7 million plan that emphasizes capital investment in utilities, transportation and parks.

"The total budget for next year is $110,700,000," Finance Director Tabitha Miller told the council during the hearing. "Capital is the driver — $60.6 million this year — and we're budgeting for a number of major water and wastewater projects as well as transportation improvements." Miller said the general fund operating budget is about $24.7 million and that the city projects a comfortable reserve position even with planned one‑time uses.

Major capital items in the five‑year Capital Improvement Program include the steel water‑line replacement, Tank 4 rehabilitation, wastewater treatment plant final construction year, U.S. 101–Sunset Avenue interchange and various bicycle and pedestrian projects. Miller told the council the water fund would use reserves to finance pipeline projects and the wastewater fund would complete the wastewater treatment configuration: "Between the water and wastewater utility funds we'll use a total of about $14.4 million from reserves... these are one‑time projects and reserves were saved for them," she said.

Council members asked about expenditure timing and contingency. Miller noted the city often budgets more than it ultimately spends because capital schedules slip; recent years show significant differences between budget and actual capital spending. The finance director also described the annual Gann appropriation limit update and said Arcadia remains well under that cap.

Other items the budget funds include park upgrades (Redwood Park basketball court, Carlson Park), Valley West planning, nuisance abatement and a proposed citywide cleanup program for encampments and illegal dumping. The council also authorized one new maintenance worker position for utility and streets operations and a continued emphasis on partnership projects with Cal Poly Humboldt and regional agencies. Miller said that even using planned reserves, the general fund reserve ratio will remain strong under policy targets.

The council unanimously adopted the budget following a public hearing and a motion to adopt the related annual appropriation limits and fiscal documents. No amendments were made at adoption.