South Pasadena finance staff present $108 million proposed budget, outline adoption schedule
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Summary
City finance staff presented the proposed fiscal year 2025–26 budget totaling about $108 million, outlined a plan to adopt it Aug. 20 and described staffing and policy priorities including recruitment, vehicle replacements and a focus on monthly reporting and KPIs.
City finance staff presented a proposed FY 2025–26 budget of roughly $108 million and asked the Finance Commission to review the plan and provide feedback before a series of public meetings leading to adoption on Aug. 20. The presentation said the general fund and related internal service funds total just under $50 million, and the general fund itself is projected at $42.5 million.
The budget message stresses a theme of “laying the foundation for a resilient future,” with no net increase in authorized full‑time positions but a number of reorganizations and position realignments to focus on community engagement, financial control, capital project management and customer service. “Although we do have currently 13 vacancies, that number has dropped from about 30 in March,” a staff presenter said.
Staff emphasized that estimated ongoing revenues slightly exceed ongoing expenditures and that the proposed budget limits ongoing spending while using one‑time revenue for one‑time needs such as equipment and vehicle replacement. “Estimated ongoing revenues actually exceed ongoing expenditures,” the presenter said. The presentation listed the top five revenue sources, with property tax identified as the largest and most stable source (about 41% of available resources).
Commissioners and staff discussed timing and reliability of numbers used in the proposed budget. Staff and the city’s accounting consultant said the unaudited beginning balances are unlikely to change and that projected ending balances are based on departmental estimates; larger uncertainties remain in the general fund. Staff said they expect to complete the FY 2023–24 audit by winter and to use audited figures for the FY 2026–27 process.
The calendar provided by staff shows the remaining public opportunities for input: a City Council study session July 30, a community meeting Aug. 6, a joint Finance Commission/City Council study session Aug. 13, and a planned budget adoption Aug. 20. Staff also told commissioners they intend to produce monthly budget‑to‑actual reports and to develop a small set of meaningful KPIs to track core services going forward.
The Finance Commission took the presentation as informational and directed staff to prepare the clean packet and a memo of line‑item cleanups before the joint meetings with council.
Less central items discussed during the meeting included vehicle replacement needs (staff proposed replacing 21 vehicles at a cost of about $1.5 million and starting a formal replacement plan), one‑time public safety equipment requests, and several department‑level staffing adjustments to reduce vacancy counts and improve recruitment and retention.
